More on the Chicago PMI miss: At 52.9, New Orders hits its lowest level since September 2009. Same for production at 50.0. Prices paid at 60.4 hits its lowest level since September 2010. Order backlogs dive to 46.3, the lowest since October 2009. "A decrease in order intake and backlog ... has caused our first workforce reductions since the Carter years," says one respondent. [View news story]

Aww widdle Obama. All those big pwobwems made by nawty George Bush and doze mean wepubwicans are wuining your wecovwee. :(

The first day of talks between Iran and world powers show a "fair amount of disagreement" but also areas of common ground , says a senior U.S. official. Iran was "engaged" in the discussions, and the meeting would continue into a second day on Thursday, the official said, adding that there was "plenty to go on" for a potential further round of talks. [View news story]

Iran has been very clear and consistent for over 30 years on it's plan to destroy the Great Satan (USA) and the Little Satan (Israel). 80 years ago arrogant leaders believed appeasement would quell Hitler's murderous racist agenda. Today our president bows to Arab kings and promises billions to muslim enemies sworn to USA's destruction. Obama's tough "talk" on Iran rings as true as his economic promises.. both end in our destruction.

Market recap: Stocks snapped back sharply from lows after France's Hollande and Italy's Monti voiced support for euro bonds and the Fed's Kocherlakota said a fall off the fiscal cliff would argue for new QE. But the move could just as easily be explained by short covering after a period of weakness. Crude oil ended below $90 for the first time since October. NYSE gainers beat losers seven to six. [View news story]

Fake since 2008... What's next - Benrnake showing up with a rug on his head?

Germany will tomorrow auction bonds with a zero coupon for the first time, underscoring its status as the ultimate safe haven despite the chaos that surrounds it. Germany plans to sell €5B ($6.41B) of two-year notes as investors seek merely "the return of capital rather than the return on capital." [View news story]

Forty-eight states recorded declining unemployment rates Y/Y, while only Rhode Island suffered an increase and one had no change, BLS reports. Nevada continues to record the highest unemployment rate, 11.7% in April (vs. 12% in March); Rhode Island and California came in at 11.2% and 10.9%. North Dakota, Nebraska and South Dakota had the lowest rates. [View news story]

Homebuilding stocks get a lift from a positive NAHB number this morning, as the sentiment reading for this month climbed to its highest level in five years. It's important to note however, that despite the improvement in starts, home building still remains well off normal levels. Anything above 50 suggests a positive view of home building conditions, and this index hasn't had a positive reading since April 2006. Toll Brothers (TOL+2.9%), KB Home (KBH+3.7%), Lennar (LEN+3.7%), Hovnanian (HOV+5%), D R Horton (DHI _3.5%), PulteGroup (PHM+1.8%) S&P Homebuilders ETF (XHB +1.5%). [View news story]

Bernanke: We will not hesitate to use additional QE if deemed necessary. The markets like that, the DJIA immediately popping 45 points. Gold recovers its losses, back to nearly unchanged. [View news story]

Ship of fools out of food, water, and no ammo. No worries. First mate Ben and swashbuckler Obama got another plan...

"Everyone is confused," writes Josh Brown about Fed policy, "I saw Hilsenrath walking out of a Starbucks in Northwest (D.C.) with two different shoes the other day." Brown thinks this new transparency is a mistake because it makes crystal clear the Fed itself has little clue as it just moves from data point to data point. [View news story]

Consumption based economy that borrows to consume more will consume itself. Thought feeding the monster would make it behave. Idiots.

China may be experiencing economic contraction right now, says Patrick Chovanec. "There's a disconnect," he says, between China's reported economic numbers and reality on the ground. There isn't a single company he's talking to expecting an increase in revenue this year. "They're struggling to stay even." [View news story]

China cooks the books and their numbers are still coming out bad. Can't wait for Obama to set us straight. Remind us of the "recovery", arrogant smirk, fake grin - chin tilted slightly upward. Messiah pose. We all feel better now.

After another blowout Q1, there's a sense of deja vu settling in over the markets. Last year saw an early rally mauled by a dramatic downturn in the spring. Ominously, many of those issues that preoccupied investors last year are still in play now. So, with end of the Fed’s Operation Twist approaching and oil prices rising, many fear we've just set ourselves up for another seasonal downturn. [View news story]

Liquidity is the massive enema Washington gives Wallstreet. Never seen an equities rally so full of bulls***. The coming blow-out will be a massive stinker. Is it OK to say Obama is a terd?